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IPE Crosses Critical Technical Indicator

In trading on Wednesday, shares of the SPDR Barclays TIPS ETF entered into oversold territory, changing hands as low as $55.1001 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100.

In trading on Wednesday, shares of the SPDR Barclays TIPS ETF ( IPE) entered into oversold territory, changing hands as low as $55.1001 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.

In the case of SPDR Barclays TIPS, the RSI reading has hit 28.7 — by comparison, the RSI reading for the S&P 500 is currently 49.8.

A bullish investor could look at IPE's 28.7 reading as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.

Looking at a chart of one year performance (below), IPE's low point in its 52 week range is $55.1001 per share, with $58.52 as the 52 week high point — that compares with a last trade of $55.10. SPDR Barclays TIPS shares are currently trading down about 0.3% on the day.

In trading on Tuesday, shares of the SPDR Barclays TIPS ETF crossed below their 200 day moving average of $56.66, changing hands as low as $56.51 per share. SPDR Barclays TIPS shares are currently trading off about 0.5% on the day.

Comparing five-year and ten-year TIPS with the same maturity date, the Atlanta Fed has found zero chance of deflation since last fallWhatever else happens while the Federal Reserve brings the country ...